This Digital Illusions' Press Release (thanks Frans) announces that DICE is
closing their New York offices. DICE New York was the arm of the Swedish
developer formed upon the acquisition of Trauma Studios, developers of the
Desert Combat modification for Battlefield 1942. According to the announcement,
the dozen employees of DICE New York are being offered the opportunity to
relocate to Sweden, and that DICE Canada will continue to operate, focusing on
expansion packs. The wording of the announcement makes it sound like this move enables
DICE to renege on a scheduled
payment:

Digital Illusions will not pay the supplement payment of 200,000
USD as agreed upon at the time of the acquisition of Trauma Studios. The total
payment is thereby 300,000 USD. Following the adjustment for the default of
payment of the additional supplement payment, the SEK 1.3m remainder of the
value of goodwill is written down during the second quarter of 2005. Other costs
of liquidation are diminutive.

Update:Gamecloud has
a reaction from Frank DeLise of Trauma/DICE NY saying those not relocating to
Sweden are being provided with severance packages, and he personally was taking
a vacation before returning to game development.

Buy a team and let them work themselves to death. Right before the game is about to earn those royalties you promised your employees as a suppliment to their low pay for their long hours.... FIRE THEM!!. Then when the royalties of millions come in on a HUGE game like this it is all yours. Those under-paid and overworked guys that were in the office till 3am every night for a year don't deserve it right. Plus you can replace them with other people looking for glory in the game industry.